The criminal case against former Illinois House Speaker and Democratic Party Chairman Michael J. Madigan has widened yet again, now including allegations Madigan used his official position in control of legislation in the General Assembly to allegedly collect bribes from AT&T for one of his political associates in exchange for securing legislation worth big bucks to AT&T.
On Oct. 14, federal prosecutors in Chicago unveiled a new count in their criminal indictment against both Madigan and his close friend and political ally Michael McClain, accusing them of official misconduct in a bribery conspiracy with AT&T.
At the same time, prosecutors announced charges against former AT&T Illinois President Paul La Schiazza for his alleged role in the alleged conspiracy with Madigan.
AT&T agreed to pay $23 million under a deal with federal prosecutors, under which the Department of Justice agreed to drop charges against the company.
According to the indictments, La Schiazza worked with McClain to allegedly arrange for $22,500 to be paid to a member of Madigan’s Democratic political organization. The complaints don’t identify the individual who benefited from the payment by name. However, that person is identified as Individual FR-1, who the complaint said formerly served in the Illinois House of Representatives along with Madigan, and who is a political ally of the former Speaker.
The Chicago Tribune has identified Individual FR-1 as former Illinois State Rep. Ed Acevedo, a Chicago Democrat and Madigan loyalist.
Madigan and McClain have both been criminally indicted on similar charges stemming from an investigation of bribes allegedly paid to Madigan political associates by electrical utility ComEd to secure Madigan’s favor in guiding new laws beneficial to ComEd through the Democrat-dominated Illinois General Assembly.
Madigan had served as Speaker of the Illinois House for nearly all of four decades, until criminal indictments of his political associates, and looming indictments against him personally, at last persuaded enough of his fellow Democrats to remove him from the Speaker’s chair in early 2021.
Republicans had for years called for Madigan to be ousted, pointing out the Speaker’s alleged corruption and iron grip on Illinois’ political process.
That grip was strengthened by a massive army of political workers and a huge campaign war chest, fueled by millions of dollars in donations from labor unions, trial lawyers and businesses and other individuals seeking to curry favor with the powerful Madigan, who could influence outcomes in both Springfield and Chicago.
Democrats, however, steadfastly maintained their support Madigan, particularly as recently as 2014-2018, during the years in which Republican Bruce Rauner served in the governor’s office, seeking to advance a range of reforms.
Illinois Gov. JB Pritzker, who is a billionaire, was among those who supported Madigan’s political organization, transferring $7 million in 2018 to Madigan’s organization through a campaign organization largely funded by Pritzker’s own money.
Many others even continued to support him even after federal prosecutors began indicting members of Madigan’s political organization, and drew ever closer to the Speaker himself.
As the indictments mounted, Pritzker refused to demand Madigan step down., leaving it to a small but stalwart collection of Illinois Democratic state lawmakers to refuse to vote to give Madigan a new term as Speaker.
After he was removed as Speaker, Madigan resigned his House seat, as well.
In the criminal indictments, Madigan is accused of leveraging his political power to lean on companies and individuals seeking political action to secure bribes, in the form of favors, jobs and payoffs to Madigan’s friends and loyalists, and business for Madigan’s property tax appeal law firm, Madigan & Getzendanner.
Madigan has pleaded not guilty to those charges.
The new counts now assert AT&T agreed to sign a “low-level contract” with the individual identified in published reports as Acevedo, funneling $22,500 to him through a third-party “consulting firm” which lobbied lawmakers on AT&T’s behalf.
In exchange, Madigan allegedly helped shepherd through the General Assembly a new law which would do away with state rules requiring the company known as AT&T Illinois, formerly Illinois Bell, to maintain landline services to all Illinois residents.
Those requirements were known as the “carrier of last resort,” of COLR, obligations.
According to the indictment, AT&T projected ditching its COLR obligations would save the company millions of dollars.
The indictment asserts the alleged bribery actions to allegedly benefit Acevedo took place in 2017.
According to the indictment, McClain, La Schiazza and others allegedly sought to conceal the payments to Acevedo by claiming the lobbying firm was “bringing on an unidentified ‘additional asset’ who ‘would make a difference for strategies associated with House Democratic Leadership views on advancing AT&T strategies for 2017 COLR legislation.’”
However, according to the indictment, the alleged conspirators created a fake assignment for Acevedo, stating he was being hired “as a consultant through (the lobbying firm) for the purpose of preparing a report on the political dynamics of the General Assembly’s and the City of Chicago’s Latino Caucus in return for” payment of $22,500.
According to the indictment, the individual identified elsewhere as Acevedo initially rejected the payment, calling it "insufficient.” But he was allegedly overridden by McClain, who completed the deal with AT&T Illinois.
According to the indictment, the individual identified elsewhere as Acevedo ultimately “did no work in return” for the money.
According to the indictment, La Schiazza and others in leadership at AT&T Illinois paid the money in full knowledge of its alleged purpose as a bribe.
The indictment included language from emails sent by and among AT&T Illinois executives seeking confirmation the payment was having the desired result and they were “100% certain that we will get credit for being responsive” from Madigan and his allies.
“I think remaining question is if we would get credit from the powers that be,” an AT&T executive said in an email to two others who worked in the company’s Legislative Affairs office.
Madigan ultimately supported AT&T’s sought-for COLR legislation, even securing a supermajority vote from his fellow Democrats when then-Gov. Rauner vetoed the bill.
Madigan has not yet been arraigned on the new charges.